SINGAPORE: Diageo opens US$8m logistics centre
Diageo is celebrating the opening of its new logistics hub for its Asia Pacific business.
The drinks giant said yesterday (10 October) that the facility, set up with logistics provider IDS Group, was opened earlier this week in Singapore at a cost of SGD$13m (US$8.2m). The partnership between the two companies will handle all of Diageo's Asia Pacific logistics requirements, the drinks company noted.
"Asia Pacific is a key growth market for Diageo," said John Pollaers, managing director of Diageo in Asia. "The setting-up and opening of our logistics hub in Singapore is a complete overhaul of Diageo's Asia Pacific supply chain, maximising our efficiency whilst allowing us to be more flexible and responsive to meet the needs of a diverse and growing Asian market.
"We are extremely impressed by IDS Group's capabilities, track record and their approach to our needs. They are an ideal partner for Diageo and we have found synergies in our corporate values and culture. Singapore's many strengths - its infrastructure, skilled workforce and geographical location - made it the country of choice over its many competitors for managing the logistics side of our business in Asia."
"Diageo's decision to consolidate its regional management and logistics for the Asia Pacific region and site its regional distribution centre here is a boost to our aim of becoming the supply chain management nerve centre of Asia," added the chairman of the Singapore economic development board, Lim Siong Guan.
The facility will be located at the IDS Group's ASRS (Automated Storage and Retrival System) facility in Tuas, one of Asia's largest and most technologically advanced distribution facilities. Premium bottled product such as Johnnie Walker and Singleton will arrive at the centre from Europe and will then be labelled, packaged, and put through quality control checks before being distributed to the different markets including Korea, Australia and China.
The facility will store Diageo inventory to the value of SGD60m and will complete the final market-specific labelling and packaging at the last moment on bespoke, high-speed, semi-automated production lines, the company added. As a result of the new facility, Diageo claims that the average product lead-time from production through to point-of-sale will be cut from eight to ten weeks down to one to three weeks.
The company's regional headquarters for Asia and Greater China are also located in Singapore.
In spite of the news that the Indian government has once again eschewed tariff reform, Richard Woodard sees plenty of export growth potential for Scotch whisky, both in emerging and established market...
Diageo plans to extend the coverage of one of its Singleton Scotch whiskies into Europe....
Diageo has lined up an addition to its Singleton line of Scotch whiskies for the US....
Diageo has launched flagship rum brand Captain Morgan in India....
Sweden's Finance Ministry has confirmed that an official close to the planned privatisation of V&S Group has resigned....
SABMiller has displayed no let up in the battle to wrest back its share of South Africa's premium beer category with the launch of an upmarket brand....
Diageo has admitted that it is under investigation from the South Korean government but has refuted claims that the probe concerns tax evasion....
Diageo has signed a deal that will see its Irish business only use electricity from renewable energy sources....
- Is Brown-Forman doing a Jack Daniel's in Ireland?
- Is Brown-Forman at the end of the SoCo road?
- Is time right for TWE to move for Diageo's wines?
- Are we kidding ourselves over craft spirits?
- Will a sexed-up SABMiller tempt AB InBev?
- Diageo secures Xerox Corp CFO as finance head
- Tesco pulls several Carlsberg SKUs in UK
- Diageo, Treasury Wine Estates quiet on wine sale
- Former Pernod Ricard exec joins Wakefield Wines
- Inver House Distillers posts FY profits leap
- The IWSR Duty Free/Travel Retail Summary Report 2015
- Future growth opportunities for global spirits
- Global gin insights - market data, product innovation and consumer trends research
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research